French Bank freezes US funds;Stocks Plunge on Rising Credit Anxiety

French Bank freezes US funds;Stocks Plunge on Rising Credit Anxiety

NEW YORK (AP) -- Wall Street fell sharply again Thursday after a French bank said it was freezing three securities funds that struggled to
find liquidity in the U.S. subprime mortgage market. The Dow Jones industrials were once more down by triple digits.

ECB Offers Unlimited Cash as Bank Lending Costs Soar

Aug. 9 (Bloomberg) -- The European Central Bank, in an unprecedented response to a sudden demand for cash from banks roiled by the subprime mortgage
collapse in the U.S., loaned 94.8 billion euros ($130 billion) to assuage a credit crunch.

The overnight rates banks charge each other to lend in dollars soared to the highest in six years. The London interbank offered rate rose to 5.86
percent today from 5.35 percent and in euros jumped to 4.31 percent from 4.11 percent.

ECB Offers Unlimited Cash as Bank Lending Costs Soar

Ekkk! Is right....now how many more time, or how much more can they afford to lend.....they will reach the limit of their comfort level some time and
then with no more capability to lend or no longer at a reasonable rate the snow ball will keep rolling on....

Perhaps this is world war 3, yet only its financial fallout and not nuclear.

BNP Paribas SA halted withdrawals from three investment funds today because the French bank couldn't value its holdings.

Because they are changing so fast no doubt...

Originally posted by infinite
Ekkk!

ECB Offers Unlimited Cash as Bank Lending Costs Soar

...a sudden demand for cash from banks roiled by the subprime mortgage collapse in the U.S....

...The overnight rates banks charge each other to lend in dollars soared to the highest in six years....

"There seems to be a hole in the balance sheet of World Inc. that will have to filled by government intervention,'' said Peter Lynch, chairman of
private equity fund Prime Active Capital Plc in Dublin. "The ECB is treating this like an emergency; it might make traders even more
afraid.''

The ECB said today it provided the largest amount ever in a single so-called "fine-tuning'' operation, exceeding the 69.3 billion euros given on
Sept. 12, 2001, the day after the terror attacks on New York.

Hear that all you naysayers out there?

We are currently undergoing a bigger financial emergency in the markets than the aftermath of 911!

Aug. 9 (Bloomberg) -- The Bank of Canada said it will ``provide liquidity'' to support financial markets after the European Central Bank loaned
money to ease a credit crunch that started with the U.S. subprime mortgage collapse.

The Bank of Canada said in a statement from Ottawa that its plan is part of "normal operational duties relating to the stability and efficient
function of Canada's financial system.'' Spokesman Jeremy Harrison said by telephone that the Bank of Canada also is in contact with other
central banks.

"While a 'normal' response by the bank, in its own words, the statement does reflect a heightened sense of concern,'' Andrew Pyle, an
investment adviser at Scotia McLeod Inc., a division of Scotia Capital,...

The U.S. Federal Reserve added $24 billion in temporary reserves to the banking system today, the most since April. Fed spokesman David Skidmore
declined to comment on the increases in overnight money-market rates.

Sub prime loan crises may affect some Chinese banks

The latest US sub prime loan crises didn't render Chinese banks safe. A US report said Chinese financial institutions had bought US$107.5 billion
worth of US mortgage securities by the end of June last year, accounting for 47.6 percent of similar investments amongst Asian countries.

And a part of those may be the highly risky sub prime loan securities, the Shanghai-based Oriental Morning Post quoted an industry insider as saying
today.

According to a report from the United States Department of the Treasury, several large banks from China have bought sub prime loan backed
securities.

Here is a queation for you all. when does this reach critical mass? the Fed just had its quarterly meeting and kept the prime lending rate static.
Should we expect movement up or down in the near future?

Most Americans dont have a clue and even if they read this they would go "huh" and "so?" Only until prices change drastically...oil skyrockets and
they realize our dollar isn't worth the crap its worth now will they begin to see...but by then the mushroom cloud will be long gone and financial
nuclear winter well have set in.

Originally posted by Justin Oldham
Here is a queation for you all. when does this reach critical mass? the Fed just had its quarterly meeting and kept the prime lending rate static.
Should we expect movement up or down in the near future?

It depends on what the guys pulling the strings do.

I would expect to see a drop in the prime rate. The logic is (for me at least) simple. You reduce the rate at which all these sub prime loans are
fluctuating at thus reducing the number of defaults which reduces the number of homes avalible, which in theory should bring a modicum of stability to
the market.

But as homer says: In theory Lisa, but communism works, in theory.

Now I will admit my economic knowledge is not my strogest area.

Given the problems the GOP has I would expect them to do this and it may be coupled by a miraculous decrease in the cost of gas as a temporary measure
to prop things up till after the 08 elections.

The bottom line is this:

I never got in huge trouble but learned by credit card lession in collage when I ran up a 2K debt. and took a while to pay it off.

Here is the simple way to live your life:

1) You need at most 2 major credit cards. We keep an Amex for the points and costco use and a VISA from our credit union.

We use are cards everywhere BUT we never carry a balance. this also helps with our FICO scores. When we bought our Hybrid a few months ago they ran
our creadit for no reason and our FICO's were 816 and 820

2) Live within our means. As a nurse in the highest RN wage area in the world (SF Bay Area) I make a really good living. A new grad nurse with no
experience is in the $40 range base. Top of scale can be over 75. Before you get too excited, a 1100 sq foot home in Palo Alto runs 1.2-1.3 million.
My wife also a nurse works 1/2 time. Its not as exciting as working at a dot com, but its also pretty much recession proof.

3) NO debt No Debt and No debt. No car loans, no nothing. Again you have to live within your means. We paied cash for a Hybrid and waited untill we
could do so. Yes its not as fun as impulse buying that 50" plasma, but if you cannot pay cash for it you should not buy it period.

"According to Dr. Turi, something is going to happen 8/9/07. We should keep our eyes on this one, because he has been more right than wrong in many
cases!
He does not say this time what it will be. He's predicted many things correctly so i wanted to forewarn you all."

The world trades in USD, that is why the proping was necessary. How long will people throw good money at a bad deal?

The only way for it to get right is for all of the greedy people who have stripped the value out of the USD, to put back their ill gotten stockpiles
of money. They are probably trying to convert this money into other currency. They will bring the house of cards to the ground.

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